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COMMERCIAL |
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Our commercial
loan programs can be tailored to your specific needs an we will
help you obtain the property you need to get your business started.
The information below will help you get started on your commercial
loan.To get started immediately click here for our on-line application.
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Commercial financing is underwritten on an individual
basis. Because every loan application is different it is assessed
on its own merits but all borrowers seeking a commercial loan will
face an evaluation of the DCR, credit worthiness, and property condition.
First a financial analysis should be completed. This analysis includes
an evaluation of the debt coverage ratio. The DCR is your monthly
debt compared to your monthly income. Following the DCR analysis,
your credit worthiness will be evaluated. This portion of the analysis
will look at past financial records for the business and may include
personal financial history in certain cases. Finally the condition
of the property is examined. All of the above factors will influence
your ability to secure a commercial loan.
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There are many types of commercial financing options available to
borrowers and they include adjustable rate commercial loans, wrap
around mortgages, credit lines, and balloon loans. Adjustable rate
commercial loans have an interest rate that varies through out the
life of the loan. A wrap around mortgage is a new mortgage which
literally wraps around the old mortgage. By using a wrap-around
mortgage, the buyer makes payments on the new mortgage directly
to the seller, and the seller continues to make payments on the
old mortgage. Credit lines provide a business with resources to
fill temporary cash shortages that are the result of the difference
between the period of cash outlays and collections. Credit lines
are usually used to finance project or contract related work, receivables,
and inventories. Commercial borrowers are also able to obtain a
balloon loan. Balloon loans feature fixed interest rates for a specified
period of time. When the loan reaches maturity the outstanding balance
must be paid in full by the borrower. There are many financing options
available to commercial borrowers and your investment plan should
be evaluated prior to deciding on a specific type of commercial
loan.
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Commercial lenders evaluate many different types of financial information
to determine if your business is worthy of a commercial loan. Lenders
often require three years of income tax and financial statements,
profit and loss statements and balance sheets. In many cases personal
financial statements are also required. Projected cash flow statements
and pro formas for the next 12 months are commonly requested as
well as a complete business plan. When all financial data is presented
it will then be evaluated and a decision regarding your loan will
be made.
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Securing a Somerset commercial loan is easy at Empire Mortgage Services
Inc. Somerset commercial loans are designed to help Somerset residents
start a business or continue an existing Somerset business. To learn
more about Somerset commercial loans contact your Somerset commercial
loan experts at Empire Mortgage Services Inc.
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